Greek banks face closures, bailout or not

Some large Greek banks may have to be shut and taken over by stronger rivals as part of a restructuring of the sector that would follow any bailout of the country, Reuters reported, citing European officials.

European leaders will gather on Sunday in a last-ditch attempt to salvage agreement with Greece after months of acrimonious negotiations that have taken the country to the brink of leaving the eurozone.

But regardless of whether or not fresh funds are now unlocked for the government, some Greek banks, damaged by political and economic havoc, may have to be closed and merged with stronger rivals, officials, who asked not to be named, told the news agency.

One official said Greece’s four big banks could be reduced to just two, a measure that would doubtless encounter fierce resistance in Athens.

A second person said that although mergers of banks were necessary, this could happen over the longer term.

After Athens defaulted on debt owed to the International Monetary Fund last month, the European Central Bank froze emergency funding for Greek banks, leading to their temporary closure and a 60 euro (US$66.40) daily limit on withdrawals from cash machines.

A decision by Greek voters last week to reject bailout terms offered by the country’s international creditors prompted the ECB to maintain its cap, meaning that the banks will run out of cash soon.

China’s economy is showing signs of cooling further, with investment growth slowing to a record low and consumers turning more cautious about spending, Reuters reports, citing official data. Fixed-asset investment expanded by a less-than-expected...

China rejected allegations raised by a UN panel that a million Uighurs may be held in internment camps in the restive Xinjiang region, but said that some people underwent re-education after being deceived by...

Turkey is full of economic potential and investment opportunities, but it is at the same time also plagued by some weaknesses and risks, shortcomings that got exposed following the recent US sanctions and the...

(Updated; last posted at 9:18 a.m.) North and South Korea agreed to hold a summit in Pyongyang in September, the latest step forward in cross-border ties this year after more high-level talks on Monday,...

A fire broke out at a hospital in Taiwan on Monday, killing nine people and injuring 15, Reuters reports. An investigation has been launched to determine the cause of the blaze. Premier William Lai said...

The National Aeronautics and Space Administration (NASA), the US government space agency, has launched a space probe that will go closer to the Sun than any spacecraft before. The Parker Solar Probe, a spacecraft...

Turkey has drafted an economic action plan and will start implementing it on Monday morning to ease investor concerns, Finance Minister Berat Albayrak said on Sunday, after the lira plunged to a new record...

Vowing that “no one can obliterate Taiwan’s existence”, President Tsai Ing-wen left on Sunday for the United States and two of Taipei’s remaining diplomatic allies, amid pressure from China to try to stamp out...